Slower economic growth in Germany is helping the country meet its emissions reduction target, Brussels Signal reports.
The analysis, published on January 7 by Agora Energiewende, said that while most of the country’s CO2 emissions reductions last year came from closing coal-fired power plants and switching to renewable and non-German energy sources, the overall weakening of the country’s economy also led to emissions reductions.
Emissions reductions were mainly seen in Germany’s transport sector. According to the organisation, there was a slight increase in total transport by passenger vehicles in 2024.
This was offset by a decrease in the number of heavy vehicles, which reportedly fell due to an overall drop in production in the country. The think-tank said:
“Only a small reduction of two million tonnes of CO2 was achieved compared with the previous year – mainly due to lower heavy goods traffic as a result of the weak economy.”
The report’s authors also focused on the perceived success of the country’s transition to renewable energy, arguing that the shift away from coal has led to lower energy costs, not higher. Agora Energiewende reported:
“In 2024, coal-fired power plants with a total capacity of 6.1 gigawatts were shut down, which corresponded to 16 per cent of Germany’s installed coal capacity. The loss in capacity was offset by record renewable energy generation amounting to 55 per cent of gross electricity consumption and increased imports, 49 per cent of which came from renewables. Despite stable electricity demand, the exchange price for electricity fell by an average of 18 per cent or €17/MWh (megawatt hour) to €78/MWh compared with 2023.”
This value is much higher than in countries less dependent on green technologies. According to the US Energy Information Administration, wholesale electricity prices in America last year mostly stayed around USD 60 per megawatt hour (EUR 58 per megawatt hour), and only in the northwest of the country were prices higher than in Germany.
This was offset by the price of natural gas, which was highest in Northern California at $4.67/MMBtu (€4.49/MMBtu, one million British thermal units), compared to nearly $14/MMBtu (€13/MMBtu) in Germany last November.
